Subject: GRIEVANCE PROCEDURE DRC NO: HRP-010

Issue 1; Revision 0; Page 1 of 4 Effective Date: March 19, 2007

Approved by: Group Head – Philippine Operation

I. OBJECTIVE

This policy and procedures shall serve as guidelines to employees, supervisors

and unit heads in handling of grievances.

II. RATIONALE

This policy is established to ensure that all disputes between employees and
Management shall be resolved though friendly discussion or amicable settlement;
thereby maintaining industrial peace.

III. DEFINITION OF TERMS

A. Grievance - Dissatisfaction of an employee with some condition of

employment which is expressed either in the form of a request or a complaint.

B. Grievance Procedure – An appeal procedure wherein the employee can bring

up a grievance for resolution.

C. Grievance Committee - A group composed of (1) the employee’s

section/department/division head, (2) HR representative, and (3) employee’s
representative, tasked to resolve a grievance.

D. Grievable Issues – Issues that can be brought for grievance resolution, such
as but not limited to: (1) pay-related issues or pay inequities, (2) claims of
favoritism, unfair disciplinary action, pay inequities, excessive overtime,
unfair distribution of overtime, (3) interpretation of Company policies and
procedures, (4) improvement of working condition, (5) management style.

IV. COVERAGE

This policy and procedure shall apply to all employees of the Company, regardless of
rank and employment status.
Subject: GRIEVANCE PROCEDURE DRC NO: HRP-010

Issue 1; Revision 0; Page 2 of 4 Effective Date: March 19, 2007

Approved by: Group Head – Philippine Operation

V. POLICY AND PROCEDURE

A. Guiding Principles in the Resolution of Grievances

1. The company subscribes to the policy that all grievances should be

addressed without delay. No grievance should be considered too trivial
for an attention.

2. The procedural steps in the settlement of grievances should be

observed at all times except in cases that the subject of the complaint
is the person involved in the step of the process.

3. The grievance should be kept informed of the course of the grievance

by the immediate superior, the section/department/division head, or the
Industrial relations Officer.

B. Procedural Steps in the Settlement and Resolution of Grievances

Step # 1 – Immediate Superior

1. The Employee puts into writing his/her grievance and discusses it with
immediate superior.

2. The immediate supervisor investigates and gives the written response to the
employee within three (3) working days upon receipt of the grievance.

Step # 2 – Department Head

1. If the employee is not satisfied with the immediate supervisor’s written

response, the employee submits his/her grievance to the
section/department/division head.

2. The section/department/division head investigates and issues the written

response to the employee within (3) working days upon receipt of the
grievance.

Step # 3 – Grievance Committee

1. If the employee is not satisfied with the results of the discussion with
the section/department/division head, the employee presents the
grievance to the Grievance Committee composed of the following:
Subject: GRIEVANCE PROCEDURE DRC NO: HRP-010

Issue 1; Revision 0; Page 3 of 4 Effective Date: March 19, 2007

Approved by: Group Head – Philippine Operation

1.1 Division or Department or Section Head

1.2 Industrial Relation Officer; and
1.3 One (1) representative from the worker to be chosen by the
employee who filed the grievance.

2. The Grievance Committee investigates and issues the written decision

on the grievance within three (3) working days upon receipt thereof.

3. Should the Grievance Committee deem that they cannot decide on the
issue, the case maybe elevated to the next step. The employee should
be informed on this decision.

Step # 4 – HR Manager

1. If the employee finds the decision unsatisfactory, he/she elevates the

grievance to the Human Resources Manager. It is also possible that the
Grievance Committee be the one to elevate the issue to the next step
should they deem that they cannot satisfactory decide on the
grievance.

2. The HR Manager investigates and issues the decision to the employee

within three (3) working days upon receipt thereof.

Step # 5 – HR Director

1. If the employee finds the decision unsatisfactory, he/she elevates the

grievance to the HR director. It is also possible that the HR Manager
be the one to elevate the issue to the next step should he/she cannot
satisfactory decide on the grievance.

2. The HR Director Investigates and issues the decision to the employee

within three (3) working days upon receipt thereof.

Step # 6 – Group Head

1. If the employee finds the decision unsatisfactory, he/she elevates the

grievance to the Group Head. It is also possible that the HR Director
be the one to elevate the issues to the next step should he/she deems
that he/she cannot satisfactory decide on the grievance.
Subject: GRIEVANCE PROCEDURE DRC NO: HRP-010

Issue 1; Revision 0; Page 4 of 4 Effective Date: March 19, 2007

Approved by: Group Head – Philippine Operation

2. The Group Head investigates and issues the decision to the employee
within three (3) working days upon receipt thereof.

Step # 7 – President

1. If the employee finds the decision unsatisfactory, he/she elevates the

grievance to the President. It is possible that the Group Head be the
one to elevate the issues to the next step should he/she deems that
he/she cannot satisfactory decide on the grievance.

2. The President reviews the report and/or investigates the grievance and
issues decision within three (3) working days upon receipt thereof.

Step # 8 – Voluntary Arbitration

1. If the employee is not satisfied with the decision, he/she may submit
written request for the grievance to be submitted to voluntary
arbitration.

VI. MEASUREMENT OF EFFECTIVENESS OF GRIEVANCE MACHINERY

Effectiveness of the Grievance Machinery is measured through the following:

1. Grievance is resolved within the turnaround time.

2. The employee is satisfied with the grievance resolution; thus no further

grievance is filed.

3. Grievance resolution. E.g. suspension from duty, is imposed immediately

after decision is arrived at.

4. Complete documentation is on file.

5. No Grievance is submitted for Voluntary Arbitration.